Vendors of various products often find it desirable to enter into cross-marketing agreements in which the purchase of a product from a first vendor earns a discount coupon for the consumer on a product from a second vendor. As used herein, the term “vendor” refers to the manufacturer of a specific product or the supplier of specific services. The term “merchant” refers to the store where the products are purchased, such as grocery stores, convenience stores, gasoline service stations, unattended fueling stations, and the like.
The issuers of credit and debit cards also have programs to encourage consumers to utilize the issuer's cards when making purchases. Conventionally, these programs have consisted of giveaways of promotional merchandise, low interest rates on unpaid balances and balance transfers from other cards, and cash back at the end of the year (usually 1-2 percent) on purchases made throughout the year. Some manufacturers such as automobile manufacturers have established affinity-type relationships with card issuers to issue credit cards with manufacturer's logo on the face of the card. Use of such cards results in cash back awards good only on purchases of the associated manufacturers' products. Similarly, some retailers have established affinity-type relationships with card issuers to issue credit cards with a retailer's logo on the face of the card. Use of such cards results in cash back awards good only on purchases within the associated retailer's stores. The manufacturers' programs and the retailers' programs are generally less effective than conventional cash back programs because of the limitations placed on use of the cash back award.
With existing affinity-type relationships, the reward does not occur at the time or point of purchase. Instead, the reward is posted to the customer's credit card account and appears on the customer's monthly account statement. The reward may appear as a monetary credit, or may appear as points, which the customer can redeem when the cumulative total surpasses defined threshold levels. Thus, the reward is not immediate, and the customer must take additional steps to redeem the reward.
A very popular affinity-type reward program provides frequent flyer airline miles as a reward for using a particular credit card. However, there are several problems with this program. For some people, it may take months or even years to reach an award level. Until that time, their accumulated miles are worthless. Other people have trouble redeeming their miles because they fly only at holiday times, and the airlines often have “blackout periods” during the holidays, during which frequent flyer miles are not redeemable.
What is needed in the art is a promotional program for credit cards that overcomes the disadvantages of existing programs while increasing sales of a cross-marketed product such as fuel. The present invention provides such a program.